Salary change pre-filing

[footballfan]

My husband and I are supposed to be filing our Ch 7 papers on 12/15.

My husband started a new job on 12/5 that has a considerable salary increase.

A couple of questions related to the new salary:

Our attorney wants to file on 12/15. On 12/15 my husband's commission from his previous employer will direct deposit to our checking account. On 12/15 my husband will also receive his first direct deposit of his new job's pay.

Are we supposed to print off a copy of our checking account balances on the day we file? If I print it at 12:01 am on 12/15, before the direct deposits hit, will that look fishy? Any other way to avoid having a large checking account balance?

Also, currently our Schedules I & J (using old income) show a negative net income (expenses more than income). Will our attorney have to update these schedules to reflect the new income (we won't necessarily have a new payment statement reflecting this new income until they are distributed at work)? I am concerned, especially since his paycheck will not reflect any deductions for 401k, medical, dental, etc as he's not eligibile until March 1.

Our attorney said he needs to update our paperwork with current information, but I'm a bit apprehensive about how all these changes are going to look and affect our filing.

Any advice, suggestions, comments, encouragement, etc greatly appreciated. Thanks~!

[KnOmom]

My husband and I are supposed to be filing our Ch 7 papers on 12/15.

My husband started a new job on 12/5 that has a considerable salary increase.

A couple of questions related to the new salary:

Our attorney wants to file on 12/15. On 12/15 my husband's commission from his previous employer will direct deposit to our checking account. On 12/15 my husband will also receive his first direct deposit of his new job's pay.

Are we supposed to print off a copy of our checking account balances on the day we file? If I print it at 12:01 am on 12/15, before the direct deposits hit, will that look fishy? Any other way to avoid having a large checking account balance?

Also, currently our Schedules I & J (using old income) show a negative net income (expenses more than income). Will our attorney have to update these schedules to reflect the new income (we won't necessarily have a new payment statement reflecting this new income until they are distributed at work)? I am concerned, especially since his paycheck will not reflect any deductions for 401k, medical, dental, etc as he's not eligibile until March 1.

Our attorney said he needs to update our paperwork with current information, but I'm a bit apprehensive about how all these changes are going to look and affect our filing.

Any advice, suggestions, comments, encouragement, etc greatly appreciated. Thanks~!

I don't know about your trustee in Co, but the one here in Florida asked for full and complete bank statement for the month following the filing of our Ch 7 bankruptcy and not just a snap shot on the day we filed. Some direct deposits post right after midnight so you are taking a chance they will see it anyhow. Plus- not to mention once your atty updates your schedules with new income info. they are going to question it because your pay stubs will not tie to the income listed on the schedule. Our trustee also asked for paystubs immed. after the filing. As far as affecting your plan...this most def. will..not sure to the extent because I do not know your situation. But to the extreme, I would think that your husband's new salary could impact your DMI to the extent that you will be forced into Chapter 13 plan. This is how they would prefer it anyway. Good Luck!!

[footballfan]

I am kind of expecting to get all sorts of fits from the new salary. On one hand, it's a great thing; on the other, it does throw a wrench into our situation.

Our main reason for filing is due to our house situation. I've flipped back and forth on whether we should even file. I've dragged our collective feet too long I suspect and should have really tried to file last month.

Sigh.

[LadyInTheRed]

Does your attorney know that the commission and paycheck will hit the checking account on the 15th? If not, tell him right away so he can advise whether it makes sense to file a day earlier. It may not make a difference because income you have earned but have not yet been paid is an asset.

You also need to sit down with your attorney to see how the increase in income will look on your petition. You may pass the means test using the past 6 month income, but your Schedules I/J must reflect the current income. If you will have enough disposible income to pay a subsantial amount to creditors over 36 to 60 months, the trustee will likely object to a Chap 7 discharge based on totality of circumstances. You need to decide whether your husband's increase in income has improved your situation enough that BK no longer makes sense for you.

[footballfan]

Short answer -- yes, he knows. I asked him if it made more sense to file on the 14th, but his answer at the time (last week) was that he files in "groups" on the 15th and 30th/31st each month. He stated this will skew the means test and we need to get filed. So the urgency is there, but he also said the trustee may very well look at this.

I guess our next step is to get the new petition in order, and go from there.